South Korea’s 10-Year Yield Rises on BOK Remarks

2026-08-11 06:50 By Kyrie Dichosa 1 min. read

South Korea’s 10-year government bond yield rose to around 4.30% in early August, moving back toward its highest level in three years after the central bank signaled that further rate hikes are likely.

Bank of Korea Senior Deputy Governor Ryoo Sang-dai said strong economic growth is fueling persistent underlying inflation.

He added that the won’s recent recovery and stock moves give policymakers some flexibility, but said the key factors for policy would be core inflation, the durability of economic growth and financial stability.

The BOK raised its policy rate by 25 bps to 2.75% in July, its first hike in three and a half years, amid stronger-than-expected growth and persistent price pressures.

While headline inflation eased to 2.8% in July, core inflation edged up to 2.6%, remaining above the BOK’s 2% target.

Ryoo said an additional hike is likely unless an extraordinary shock occurs, with policymakers expected to assess growth and inflation forecasts ahead of the August 27 meeting.



News Stream
South Korea’s 10-Year Yield Rises on BOK Remarks
South Korea’s 10-year government bond yield rose to around 4.30% in early August, moving back toward its highest level in three years after the central bank signaled that further rate hikes are likely. Bank of Korea Senior Deputy Governor Ryoo Sang-dai said strong economic growth is fueling persistent underlying inflation. He added that the won’s recent recovery and stock moves give policymakers some flexibility, but said the key factors for policy would be core inflation, the durability of economic growth and financial stability. The BOK raised its policy rate by 25 bps to 2.75% in July, its first hike in three and a half years, amid stronger-than-expected growth and persistent price pressures. While headline inflation eased to 2.8% in July, core inflation edged up to 2.6%, remaining above the BOK’s 2% target. Ryoo said an additional hike is likely unless an extraordinary shock occurs, with policymakers expected to assess growth and inflation forecasts ahead of the August 27 meeting.
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